US extends Iran sanction waivers to India, others

The US announced the extension of its waiver exempting nine countries including India, China from the American sanctions regime directed against the Iranian oil trade. India got the waiver as it had significantly reduced the crude export from Iran. Previous such waiver was granted in June 2012 which is due to expire in December, 2012.

India has a stated policy of following only UN sanctions and not those imposed unilaterally by countries or block of countries. However, the ramifications of the US sanctions on global financial institutions have forced India to rework its trade equations with Iran which is not just critical to India’s crude oil needs, but is also an important strategic ally.

Why sanctions have been imposed on Iran? 9 countries who got waiver.

Why sanctions have been imposed on Iran?

The sanctions have been imposed on Iran to choke its finances in order to pressurize it to quit its nuclear enrichment programme. The West suspects Iran’s nuclear program is enriching uranium to levels that could be used in weapons. Tehran says the program is for electricity generation and medical purposes.